{"id":128351,"date":"2026-06-12T13:24:19","date_gmt":"2026-06-12T09:24:19","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=128351"},"modified":"2026-06-12T13:24:23","modified_gmt":"2026-06-12T09:24:23","slug":"brent-crashes-below-87-toward-7-weekly-loss-iran-mou-details-emerge-as-hormuz-deal-edges-closer","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/brent-crashes-below-87-toward-7-weekly-loss-iran-mou-details-emerge-as-hormuz-deal-edges-closer\/06\/12\/market-updates\/","title":{"rendered":"Brent Crashes Below $87 Toward 7% Weekly Loss: Iran MOU Details Emerge as Hormuz Deal Edges Closer"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Oil plunges:<\/strong> Brent fell 4.3% to $86.47 per barrel, while WTI dropped 4.5% to $83.78 \u2014 both on track for weekly losses exceeding 7%.<\/li>\n\n\n\n<li><strong>Brent breaks below $90:<\/strong> The key psychological level was breached Thursday after Trump signaled an imminent peace deal.<\/li>\n\n\n\n<li><strong>MOU details revealed:<\/strong> Iran&#8217;s Mehr news agency reported the framework would unblock Hormuz, lift U.S. sanctions on Iranian oil, and release frozen Iranian funds.<\/li>\n\n\n\n<li><strong>Nuclear and economic talks to follow:<\/strong> Final negotiations will focus on these areas; Iran&#8217;s missile program is excluded from discussions.<\/li>\n\n\n\n<li><strong>Weekend signing possible:<\/strong> Trump said Washington and Tehran could sign a deal as soon as this weekend.<\/li>\n\n\n\n<li><strong>Traders remain cautious:<\/strong> Similar Trump statements in the past have repeatedly failed to halt the war.<\/li>\n\n\n\n<li><strong>ING&#8217;s warning:<\/strong> &#8220;We think Brent oil can easily make a move above $100 again. The longer the conflict remains unresolved, the more supply shortages will feed into higher prices.&#8221;<\/li>\n\n\n\n<li><strong>ECB cited oil spike:<\/strong> The central bank specifically referenced Iran-linked energy costs in Thursday&#8217;s rate hike decision.<\/li>\n\n\n\n<li><strong>Fed expected to hold next week:<\/strong> But markets still price in a hike before year-end per CME FedWatch.<\/li>\n\n\n\n<li><strong>CPI and PPI both hot this week:<\/strong> U.S. inflation data confirmed energy-driven price acceleration.<\/li>\n\n\n\n<li><strong>OPEC cuts demand forecast:<\/strong> The producer group slashed its 2026 global oil demand growth estimate to 970,000 bpd from 1.17 million bpd, citing Hormuz shipping constraints.<\/li>\n\n\n\n<li><strong>OPEC raises 2027 outlook:<\/strong> Anticipates a consumption rebound as geopolitical tensions eventually subside.<\/li>\n\n\n\n<li><strong>Pre-war levels still distant:<\/strong> Despite the selloff, oil remains well above where it traded before the conflict began.<\/li>\n<\/ul>\n\n\n\n<p>Oil extended a slide from the previous session on Friday, as hopes grew that a peace deal between the United States and Iran \u2014 which would reopen the Strait of Hormuz \u2014 may be signed soon.<\/p>\n\n\n\n<p>Brent crude futures, the global oil benchmark, were last down 4.3% at $86.47 a barrel, while U.S. West Texas Intermediate crude futures declined 4.5% to $83.78 a barrel.<\/p>\n\n\n\n<p>The Brent contract slipped below $90 a barrel on Thursday after U.S. President Donald Trump suggested that an agreement to end the war in Iran \u2014 now in its fourth month \u2014 may be close. Both benchmarks are on track for weekly losses of over 7%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">MOU Details Emerge<\/h2>\n\n\n\n<p>The Mehr news agency reported that a Memorandum of Understanding between Iran and the United States would unblock the Strait of Hormuz \u2014 a vital waterway for a fifth of the world&#8217;s oil \u2014 and lift U.S. sanctions on Iranian oil. The MOU would also include the release of frozen Iranian funds, Mehr reported, adding that final negotiations will focus on nuclear and economic issues. Discussions about Iran&#8217;s missile program will be excluded, Mehr said.<\/p>\n\n\n\n<p>Relevant authorities still need to finalize the proposed deal, the report added.<\/p>\n\n\n\n<p>Washington and Tehran could sign a peace deal as soon as this weekend that would reopen the Strait of Hormuz to shipping, Trump said on Thursday.<\/p>\n\n\n\n<p>However, traders remained cautious \u2014 particularly after similar statements from Trump in the past have failed to halt the more than three-month-old war.<\/p>\n\n\n\n<p>&#8220;We think Brent oil can also still easily make a move above $100 again. The longer the conflict remains unresolved, the more supply shortages will feed into higher prices,&#8221; analysts at ING said in a research note.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Inflation and Rate Hike Context<\/h2>\n\n\n\n<p>Oil prices remain well above pre-war levels, although their slide could help ease concerns over an energy-fueled inflation burst that may persuade global central banks to hike interest rates.<\/p>\n\n\n\n<p>The European Central Bank cited an Iran-linked oil spike as a central factor behind its decision to raise rates by a quarter percentage point on Thursday. Meanwhile, data this week showed an acceleration in both consumer and producer prices in the United States, largely due to the energy spike. The Federal Reserve is anticipated to leave borrowing costs unchanged after its policy meeting next week, but markets are betting that officials will hike rates before the end of the year, according to CME&#8217;s FedWatch Tool.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">OPEC Cuts Demand Outlook<\/h2>\n\n\n\n<p>Pressure on oil was potentially compounded by a weaker demand outlook from OPEC. In its monthly report, the producer group cut its forecast for 2026 global oil demand growth for a second straight month, citing the impact of shipping constraints through the Strait of Hormuz.<\/p>\n\n\n\n<p>OPEC now expects global oil demand to grow by 970,000 barrels per day in 2026 \u2014 down from a previous forecast of 1.17 million barrels per day \u2014 although it raised its 2027 forecast, anticipating a rebound in consumption as geopolitical tensions subside.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Oil plunges: Brent fell 4.3% to $86.47 per barrel, while WTI dropped 4.5% to $83.78 \u2014 both on track for weekly losses exceeding 7%. Brent breaks below $90: The key psychological level was breached Thursday after Trump signaled an imminent peace deal. MOU details revealed: Iran&#8217;s Mehr news agency reported the framework would &hellip;<\/p>\n","protected":false},"author":9,"featured_media":53340,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,36],"tags":[],"class_list":["post-128351","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=128351"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128351\/revisions"}],"predecessor-version":[{"id":128352,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128351\/revisions\/128352"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/53340"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=128351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=128351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=128351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}